Yes, I do agree with this statement. It can be clarified with the help of advantages of formal organisation and limitations of informal organisation.

Advantages of Formal Organisation:

i. Easy to Fix Accountability: Since the authority and responsibility of all the employees have been already fixed, inefficient employees can easily be apprehended and in this way their accountability can be fixed.

ii. No Overlapping of Works: In the formal organisation, everything moves in an orderly manner. Therefore, there is no possibility of any work being left out or unnecessarily duplicated.

iii. Unity of Command Possible: It is possible to observe the principles of unity of command in view of the presence of scalar chain of authority.

Limitations of Informal Organisation: Following are the limitations of Informal Organisation:

i. It creates Rumours: All the persons in an informal organisation talk carelessly and sometimes a wrong thing is conveyed to the other person which may bring in horrible results.

ii. It resists Change: This organisation resists change and lays stress on adopting the old techniques.

iii. Pressure of Group Norms: In this organisation, people are under pressure to observe group norms. Sometimes the people assembled in informal group lose sight of their objective and all decide to oppose their superiors unanimously. Such a situation adversely affects productivity.